NMDC to expand presence in gold, diamond, tungsten mines

11 December 2017

Iron ore mining major NMDC Ltd today outlined its plans to consolidate its iron ore mining business while laying special focus on growing its mining for gold and diamonds in India and abroad, apart from stepping up efforts for tungsten mines.

The state-owned mining company, which closed the last financial year with production of 34 mt of iron ore, is looking at taking this up to 67 mt by 2022, thereby, doubling the output.

The Hyderabad-based company, which is set to kick-off its 60th year celebrations from December 8, believes it is well placed to strengthen its overseas business, including Legacy Mines in Australia, its tungsten mining business in Vietnam and the coking coal business abroad, which NMDC is engaged with venture partners in ICVL.

Vice-President M Venkaiah Naidu will initiate the celebrations by unveiling a stamp and logo of the Diamond Jubilee year of NMDC.

N Baijendra Kumar, Chairman and Managing Director of NMDC, said the company has drawn up near-, medium- and long-term strategies and plans to almost double iron ore production, taking it up to 67 mt by 2022.

TUNGSTEN

Interacting with media at NMDC headquarters, the CMD said the company has diversified into steel-making and has undertaken several capital intensive projects to modernise and increase capacities to retain its domestic leadership, apart from foraying into overseas businesses successfully.

Having teamed up with Midhani for stepping up output of tungsten for use in defence and other strategic applications, NMDC has been engaged in discussions with Masan Resources based in Vietnam. NMDC expects to finalise a deal and an MoU and may even pick up stake in the mines, he said.

GOLD & DIAMOND

Referring to gold and diamond mines, the CMD said, “While we are expanding our presence in Panna mines in Madhya Pradesh, we are also looking at opportunities to get rights for some more mines in the country. Significantly, the Legacy Mine, where NMDC is a major stakeholder, also holds promise for gold mining.”

“Over the years, we have diversified and expanded our presence to other geographies including Australia, Mozambique and Tanzania. Teaming up with other joint venture partners, in ICVL, we expect to step up coking coal output,” he said.

Talking about company investments, the CMD said: “Last fiscal we had a capex of Rs. 3,196 crore and this year we expect to deploy about Rs. 3,500 crore. Last fiscal we closed with a turnover of Rs. 8,829. We have reserves of about Rs. 6,000 crore,”

Source: BL